§ The need to finance this overall deficit was the main reason why the National Debt increased over the year by £143 million to a total of £27,375 million. This increase does not, of course, represent an additional burden on the taxpayer since it was much less than the total of Exchequer advances for productive investment by the nationalised industries and other borrowers who pay interest to the Exchequer.
§ I must now try to satisfy the technical appetites of those hon. Members of tae Committee—I trust a majority—who display a laudable interest in the Government's funding activities. Other hon. Members may relax for a few minutes. During the year we have had to deal with two major maturities, £676 million 4 per cent. Conversion Stock, 1957-58, which fell due for repayment last June, and £592 million 2 per cent. Conversion Stock, 1958-59, which matured last January. We were successful in converting the major part of these maturing stocks by the issue of £353 million 41 per cent. Conversion Stock, 1963, £299 million 51 per cent. Conversion Stock, 1974, and £250 million 41 per cent. Conversion Stock, 1964. These are enormous figures and reflect a highly satisfactory outcome of our funding operations last year. The remaining £366 million was paid off in cash and it is chiefly because of this cash payment and of the overall Exchequer deficit to which I have referred that the floating debt has risen during the year by £391 million.
§ Last year, however, the rise in the floating debt was not associated with a rise in the floating debt held by the banks and by the market generally. The rise was in the holdings of the Departments. This occurred as the Departments sold Government stocks to the market and as maturing stocks which they had acquired were redeemed. On the other hand, holdings of floating debt other than by Departments decreased during the year. The restraint thus exercised over the total of floating debt in the hands of the market considerably strengthens our ability to influence future monetary 36 Developments, but it has not been used to restrict credit at the present time. On the contrary, there has been a considerable expansion. Advances made by the clearing banks to private borrowers have risen in the twelve months ended 18th March by about £500 million, while their net deposits have risen by nearly £250 million.